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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MARKET INSIGHT
- In the equity space, S&P E-minis continued to climb yesterday and the contract probed key resistance at the 50-day EMA, which intersects at 4576.56 today. A clear breach of this average is required to improve bullish conditions and signal the potential for a strong bullish recovery towards 4671.75 next, the Jan 18 high. For now, gains are still considered corrective. A resumption of weakness would refocus attention on 4121.75, the Jan 24 low. EUROSTOXX 50 futures also traded higher yesterday. Recent gains have resulted in a break of the 50-day EMA. Price has so far failed to remain above the average - at 4212.10 today - and is trading lower. The 50-day EMA marks a key resistance area and a clear break of it is required to suggest scope for a stronger recovery. This would open 4324.50, the Jan 13 high. Gains are, for now at least, still considered corrective. A strong reversal lower would refocus attention on 3990.50, the Jan 24 low.
- In FX, EURUSD has traded above the 20-day EMA. Two key resistance levels remain intact; 1.1338, the 50-day EMA and1.1356, the bear bear channel top, drawn from the Jun 1 2021 high. Currently, gains are considered corrective however a channel breakout would alter the picture. A resumption of weakness would refocus attention on the key support at 1.1121, Jan 28 low. GBPUSD is firmer too as the pair extends the recovery from last week’s 1.3358 low on Jan 27. Resistance at 1.3525, Jan 26 high, has been breached. This opens 1.3662 next, the Jan 20 high. A turn lower however would signal the end of the corrective bounce and open 1.3358, Jan 27 low and the short-term bear trigger. USDJPY remains below 115.68, the Jan 28 high. Key short-term support has been defined at 113.47, the Jan 24 low. While this level holds, the outlook appears bullish and a reversal higher would refocus attention on 116.35, the Jan 4 high.
- On the commodity front, Gold remains vulnerable following the recent break of a bull channel base drawn off the Aug 9 low. This signals potential for a move lower towards $1753.6, the Dec 15 low. Initial resistance to watch is $1822.2, the Jan 27 high. WTI futures remain in an uptrend. The contract has recently cleared $87.10, the Jan 20 high and attention is on the psychological $90.00 handle.
- In the FI space, Bund futures remain in a downtrend with a bearish sequence of lower lows and lower highs clearly highlighting a downtrend. The focus is on 168.00. Gilts earlier this week traded through support 121.93, Jan 19 low. This confirms a resumption of the downtrend and opens 121.61 next, the Nov 13 2018 low.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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